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Buy-Sell Agreements for Medical Practices

We Help Medical Practices with Buy-Sell Agreements in the Bay Area

Do you own and operate a medical practice in California? If you share ownership rights with any other party, it is imperative that you have a well-drafted buy-sell agreement in place. It is important to hire a solutions-driven business lawyer with extensive experience advising medical practices. If you have any questions about buy-sell agreements, we can help. Contact us at our Fremont law office today to set up your confidential, no obligation initial consultation.

What is a Buy-Sell Agreement?

A buy-sell agreement (buyout agreement) can be a contract between co-owners of a business. Most often, the agreement lays out the procedure under which the shares of a departing owner will be distributed or sold if they decide to exit the business due to various reasons—such as death, disability, or retirement.

Why Buy-Sell Agreements Are So Important for Medical Practices in California

While many business owners can benefit from a buy-sell agreement, these types of contracts are especially vital for medical practices. California law mandates that a medical practice must be owned and operated by a licensed medical professional (Moscone-Knox Professional Corporation Act). If a physician partner suddenly departs, another licensed professional must own the business. The practice cannot be directly transferred to most other parties—such as a non-physician spouse. A well-drafted buy-sell agreement helps to ensure a proper transition plan is in place.

A Buy-Sell Agreement Should be Customized to Meet the Needs of a Medical Practice

Every medical practice has its unique dynamics, professional relationships, and future aspirations. As such, a generic, one-size-fits-all buy-sell agreement can lead to complications down the road. It is crucial that the agreement reflects the individual needs and circumstances of the medical practice. Especially taking into consideration the assets and liabilities of the practice. You will want to make sure that you address any unique issues related to your practice.

Key Elements of a Well Drafted Buy-Sell Agreement

Although every buy-sell agreement should be customized to meet the needs of the medical practice, there are some key issues that should always be considered and addressed. Here are some of the most important elements that you will find in a typical buy-sell agreement:

Valuation: Parties should define how the practice will be valued—whether through a predetermined formula or by a specified third-party professional.
Trigger: The contract should clearly state the situations (death, disability, retirement, etc.) that will activate the buy-sell provisions.
Funding: A properly drafted agreement will explain how the buyout will be funded—whether through insurance, personal funds, or outside financing.

We Help Medical Practices Negotiate and Draft Buy-Sell Agreements

Buy-sell agreements for medical practices are complex contracts. It is imperative that you have the right agreement in place for your business. Our law firm negotiates, drafts, and reviews buy-sell contracts for medical practices in California. We will ensure that any contract that you sign properly protects your legal rights and financial interests.

Contact Our California Business Lawyer for Medical Practices

Lynnette Ariathurai is a business law attorney for medical practices who has extensive experience with buy-sell agreements. Contact us today for your confidential consultation. We help medical practices with the negotiation, drafting, and review of buy-sell agreements throughout the Bay Area.

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Legal Language to Include in Contractor Contracts and Estimates to Reduce Liability to the Licensed Contractor

Contracts are at the foundation of most modern commercial relationships—especially in construction and other trades. It is imperative that contractors have properly drafted agreements—including their pre-agreement estimates. Language matters. Here, our Fremont business contracts lawyer provides an overview of some of the most important legal language to include in contracts and estimates to reduce the risk of liability.

Indemnification Provisions

Legal protection for contractors often starts with a well-drafted indemnification clause. Broadly defined, an indemnification provision is a contract term that holds that one party is responsible for compensating the other party for any harm, loss, or liability. Any contract or estimate presented by a contractor should clarify indemnification. It is a big issue for contractors working with subcontractors or other parties on a project. For contractors, a well-drafted indemnification provision can help to shield you from third-party claims.

Limitation of Liability Clauses

Limitation of liability is another essential piece of legal language for contractors. In effect, this type of contract provision limits the total amount of liability of a contractor. These clauses can be enforceable in California. However, they must be properly drafted. Under California law (Cal. Civ. Code § 1668), contractors cannot limit their liability with regard to certain acts or omissions—such as gross negligence, willful misconduct, or certain statutory violations.

For example, imagine that a contractor violated certain health and safety laws during a project. As a direct result, their customer sustains significant damages. Not only does a new California law (AB 1747) raise the potential statutory penalties that a company could face to up to $30,000, but such a violation could also render a limitation of liability clause unenforceable.

Limitation of Damages Clauses

Similar in intent to the limitation of liability clauses, limitation of damages clauses explicitly define and often cap the damages recoverable by the other party. For instance, this type of contract term may stipulate that consequential damages cannot be sought. Under California law (Cal. Com. Code §2719(3)), a limitation of damages clause cannot be deemed unconscionable. If a limitation of damages is ruled unconscionable by a California court, it could be set aside.

Dispute Resolution Provisions

Dispute resolution provisions can also affect contract terms for companies to limit their liability risks. A key advantage of a well-drafted dispute resolution clause is that it can help a contractor

avoid the costs and unpredictability of litigation. These contract terms stipulate that parties agree to resolve disputes through methods like mediation or arbitration rather than going to court. For example, many contractors opt to include an arbitration provision in a contract. To be enforceable in California, this clause must be properly drafted.

Get Help from Our California Business Law Attorney for Contractors

Lynnette Ariathurai is a business lawyer with extensive experience drafting, reviewing, and negotiating contracts for contractors and construction companies. If you have any questions about reducing your liability risk, please contact us for a confidential initial consultation.

construction business legal advice, construction business legal language, construction business regulations, contract drafting, contractor estimates, contractor liability

Legal Needs in Setting Up a Successful Construction Company in California

Are you preparing to set up your own construction company? It is imperative that you have the right structure in place. Here, our Fremont lawyer for starting a business highlights the key things to know about setting up a successful construction company in California.

Know the Licensing Requirement: CSLB Contractor’s License

To start a construction company in California, you must have the proper license. If you already have a California State License Board contractor’s license, you can start a construction company right away, regardless of whether you have any prior history owning your own business. In other words, you can start your own construction company today if you have a CSLB contractor’s license, but you have only ever worked for other employers.

We Help CSLB Contractors With their Application for an Entity License

Companies providing contractor services will need a CSLB license. Navigating the complexities of obtaining an entity license can be daunting for CSLB contractors who are preparing to start their own company. Our team can help. We are committed to simplifying the process and providing comprehensive assistance tailored to the unique needs of each contractor. With in-depth knowledge of the requirements, we ensure your application is complete and accurate. For construction companies in California, bonds are generally required. Of course, obtaining the proper insurance coverage is also incredibly important. For some types of entity licenses, workers’ compensation coverage is required even if the company has no employees.

Other Important Legal Needs for Starting a Construction Company in California

Beyond obtaining the CSLB contractor’s license and the business entity license, there are several other key considerations that you need to address when starting a construction company. Some other notable legal needs for setting up a construction business in California include:

City business license (business permit): Most cities in California have their own regulations regarding business operations. Before you can legally run a construction company in a local area, it is essential you secured any required business license/business permit. The permit legitimizes your operations within the city.
Legal structure for business (sole proprietorship, LLC or corporation): A construction company needs the proper legal foundation. While some construction companies are established as sole proprietorships or corporations, some entrepreneurs in the construction industry opt for a limited liability company (LLC) structure. Notably, a properly formed and operated corporation or LLC can provide owners with personal liability protection.
Compliance with California employment laws: California has stringent employment laws designed to protect workers. As a construction company, it is crucial to understand and adhere to these laws. Notably, construction businesses should pay close attention to the regulations regarding employees and independent contractors.
Properly drafted contracts: Contracts form the backbone of most construction projects in California. These contracts define the scope, payment terms, responsibilities, and potential liabilities among other things. CSLB also requires certain language to be included in contracts for construction services. To protect your company from future disputes and comply with CSLB, a construction company’s contracts should be drafted and/or reviewed by an attorney.

Contact Our Bay Area Business Lawyer for Construction Companies Today

Lynnette Ariathurai is an experienced, solutions-driven business lawyer. We help clients set up successful construction companies. Contact us right away for a fully confidential appointment. We provide business law services to construction companies throughout the Bay Area.

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Updated CA Family Care and Leave Act Impacts Small Businesses

The California Family Rights Act (CFRA) is our state’s counterpart to the federal Family and Medical Leave Act (FMLA). The CFRA provides more expansive protection to employees and, as of January 1st, 2021, the CFRA has been updated and expanded. More small businesses in the Bay Area now have obligations under the statute. In this article, our Fremont employment law attorney for employers provides an overview of the key things small businesses should know about the updated California family care and family leave laws.

Background: An Overview of the CFRA

The CFRA is our state’s primary family care and leave law for employees. Under the CFRA, eligible employees may take up to 12 weeks of job-protected unpaid leave to deal with a qualifying family or medical emergency. The California Department of Fair Housing and Employment emphasizes that the law provides leave for eligible workers to “care for their own serious health condition or a family member with a serious health condition, or to bond with a new child.”

Dramatic Expansion of CFRA—It Now Applies to Many Small Employers

Recent legislation has changed the scope of the family care and medical leave laws in California. Effective as of January 1st, 2021, many more small businesses are covered by the CFRA. Here are five key things that all small business owners in the Bay Area need to know about the law:

Five or more employees: The CFRA applies to all businesses and organizations with five or more total employees. Only employers with four or fewer workers are exempt from coverage.
Executives are employees: The CFRA clearly states that executives and officers are counted as employees.
No more 75 mile radius: The 75 mile radius requirement—which still counted for the federal FMLA—is no longer an element in the CFRA. It doesn’t matter where employees are located. As more and more workers began to work remotely, California removed the 75 mile radius requirement.
No exception for employers based outside of CA: The CFRA counts all employees—regardless of state. Further, there is no exception to the law for employers based outside of California. If you have an employee in California and you have five or more total workers nationwide, that California employee is covered by the CFRA.
“Family member” is broader: Finally, the term “family member” has been dramatically expanded to include more people. A worker may now be able to take unpaid, job-protected leave to care for an adult child, a sibling, or a grandparent.

Small Businesses Must Ensure that their Employee Handbook is Updated

All small businesses in California should review and, if necessary, revise their employee handbook and/or any other materials that they provide to staff. As the reformed CFRA applies to many more small businesses, it is possible that some companies or organizations are using outdated materials that improperly state that they are not covered by the CFRA. Small businesses can consult with an employment lawyer for employers to ensure that their handbook is fully compliant with the January 1st, 2021 revisions to the CFRA.

Get Help from an Employment Lawyer for Employers in California

Lynnette Ariathurai is an experienced employment attorney for employers. If you are a small business owner in Fremont CA, near Newark, or Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, or Santa Clara with questions about the updated California Family Rights Act (CFRA), we are here to help. Contact us today to set up a confidential initial appointment.

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Changing California Employment Laws Could Impact Your Business

Changing California Employment Laws

Several important employment law changes are taking effect in California on January 1st, 2022. If you own or operate a small or mid-sized business it is crucial that you take action to ensure that your company’s policies and procedures are still in full compliance with federal, state, and local regulations. Here, our Fremont employment lawyer for employers provides an overview of the changing employment laws in California and explains the value of seeking professional guidance.

An Overview of the Key Employment Law Changes in California

Over the past several years, California Governor Gavin Newsom has signed a number of bills with employment law provisions. A few changes officially took effect on January 1st, 2022. Some of the most notable employment law changes include:

Revision of the California Family Rights Act: In 2020, there were significant changes made to the California Family Rights Act (CFRA). In 2021, a new bill (AB 1033) was passed to fix a drafting error within the previous CFRA reform. Further, AB 1033 expands the CFRA mediation program for small employers.
Heightened enforcement of wage and safety violations: As of January 1st, 2022, Senate Bill 606 took effect in California. The legislation significantly expands the Cal/OSHA’s authority to hold employers accountable for certain types of wage violations and workplace safety violations. It is crucial that small employers ensure full compliance with all state and federal wage and hours laws and all state and federal safety regulations.
New rules on severance and settlement agreements: New regulations regarding severance and settlement agreements are taking effect in California. Among other things, the law prohibits employers from including non-disclosure provisions in most settlement agreements pertaining to a workplace harassment claim or a workplace discrimination claim.
Continued COVID-19 workplace safety compliance: Finally, there are continued COVID-19 workplace safety regulations that employers need to be aware of in 2022. With the spread of the highly-transmissible Omicron variant, COVID-19 is expected to be a significant workplace safety issue in 2022. Employers must comply with SB 336 and AB 654.

Small Business Can Benefit from an Employment Law Review for 2022

As a small business owner in the Bay Area, you undoubtedly have a lot on your plate. It is imperative that you do not allow California employment law changes to go unaddressed. The start of a new year is an excellent time to seek professional legal guidance regarding employment handbooks as well as employment policies and benefits. Our experienced California employment lawyer for employers can conduct a comprehensive review of your company’s practice to ensure that you are in full compliance with all applicable regulations—both the already established rules and the updated laws.

Contact Our California Employment Law Attorney Today

Lynnette Ariathurai is a skilled employment lawyer for employers. If you have any questions about California’s changing employment laws, we can help. Contact us today for a confidential consultation. We provide employment law representation throughout the region, including in Fremont, Newark, Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, and Santa Clara.

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Steps to Defend a Claim When an Employee Sues

Owning and operating a successful business is challenging in the current economic environment. No business owner wants to face a lawsuit—especially a legal claim from one of their own employees. If your company is facing a complaint from an employee, it is imperative that you know what to do to protect the best interests of the business. Here, our Fremont employment law attorney for employers highlights five key steps to take to protect yourself and your business against an employee claim.

1. Understand the Nature and Scope of the Claim

First and foremost, it is crucial that you take the time to understand the nature and scope of the claim. Did the employee actually file a lawsuit or did they initiate a claim with state or federal regulators? In employment law cases, many claims go through a regulatory agency before any lawsuit is filed. You may be facing a claim with the:

California Labor Commissioner’s office
California Department of Fair Employment and Housing (DFEH)
United States Department of Labor (DOL)
Equal Employment Opportunity Commission (EEOC)

2. Do Not Take It Personally, Do Not Punish the Employee

As challenging as it can be, it is important to remember that employment law claims are not personal. These complaints should be handled in a professional manner. If the employee still works for your company, do not take any adverse action against them—even if you believe that they filed a false claim in bad faith. You do not want to expose your company to liability for retaliation. The EEOC notes that retaliation is the most common basis for employment claims nationwide.

3. Identify and Preserve Relevant Documents and Record

Employers can effectively protect their interests by identifying, gathering, and organizing all documents and records that may be relevant to the claim. Not only do employers have a general obligation to save information once a claim has been filed, but these records can form evidence to help protect your business against liability.

4. Notify Your Insurance Carrier (If Applicable)

Does your company have employment practices liability insurance or another type of related insurance coverage? If so, it is crucial that you notify your insurer once a claim has been filed. In general, insurance policies require that businesses/organizations provide timely notice of a legal claim. Failure to tell your insurance carrier that a claim has been filed could undermine your coverage.

5. Consult With an Employment Attorney for Employers

Employment law is complicated. There are many specialized rules and regulations in place under both federal and state law. Employers facing a lawsuit (or formal claim) from a current or former employee can benefit from consulting with an experienced employment law attorney. A lawyer will be able to review the specific circumstances of the case and help you determine the best course of action—whether that is building a strong defense or working towards a solution in mediation.

Schedule a Confidential Consultation with a California Employment Lawyer

Lynette Ariathurai is an experienced employment law attorney for employers. If you have questions about defending an employee claim, attorney Ariathurai can help. Contact us now for a confidential consultation. We represent employers in Fremont, Newark, Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, and Santa Clara.

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Should Attorneys Speak for Employers During Employee Disputes?

To be successful, businesses and organizations need strong relationships with their employees. A legal dispute with an employee can cause serious headaches for a business owner or manager. Even worse, it could put the company or organization at a liability risk. A lawyer with experience representing employers can help your business navigate a conflict.

This raises an important question: Should an attorney speak on behalf of an employer during a dispute? The answer depends on the circumstances — though it is always important to consult with a lawyer as early in a dispute as possible. Here, our California employment law attorney for employers explains what you can expect from your lawyer during a dispute with an employee.

Preventing Claims through Proactive Guidance

It is important to emphasize that a dispute with an employee is not the same thing as an employment law claim. An attorney can help your business take proactive measures to prevent employee claims. This starts with putting the right practices and structure into place. By doing so, your business can go a long way towards reducing the risk of a dispute. Even if a dispute has already arisen, it may be possible to resolve the matter before a formal claim is filed.

If your Bay Area business is already locked in a dispute with an employee, a lawyer can help you take the appropriate action to resolve it. What exactly this entails depends on the specific situation, including the ultimate objectives of your business. In some cases, the best path forward is to take time to understand the employee’s concerns and look for a mutually workable, low-conflict solution that avoids a claim with the Labor Commissioner, Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and Housing (DFEH).

Defending Employment Law Claims

Not all employee claims are preventable. Even if your company does everything right, there is still a risk that you could face legal action from a current or former employee. Our experienced California employment law attorney for employers can defend your business or organization in an employee claim.

Once a formal claim is filed with the Labor Commissioner, EEOC, DFEH, or any other agency, it is best to let your employment law attorney speak on behalf of your business. It is still possible that the matter could still be resolved outside of court. Nonetheless, it is best practice to work with an employment lawyer for employers who can ensure that the rights and interests of your business are protected.

Get Help from an Employment Lawyer for Employers in California

Attorney Lynette Ariathurai is an experienced, results-driven employment lawyer for employers. If you have any questions about defending your business or organization against an employment dispute, we are more than ready to help.

Contact us now for a strictly confidential initial consultation. We represent employers throughout the Greater Bay Area, including in Fremont, near Newark, Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, and Santa Clara.

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Best Practices for Navigating Changing COVID Laws for Businesses

The COVID-19 pandemic continues to affect communities around the world. According to data from the California Department of Public Health, there have been more than 4.1 million cases of the virus confirmed in the state as of mid-August of 2021—and with the Delta variant, case rates are rising once again. For businesses, navigating the ever-changing regulatory environment during the pandemic is challenging. Here, our Fremont, CA business lawyer highlights some of the best practices for companies looking to navigate COVID-19 regulations in the Bay Area.

Do Your Research (Local Law Matters)

You need to stay up-to-date on all applicable laws. Indeed, the only truly effective way for businesses to navigate the changing COVID-19 legal landscape is to work with an experienced business lawyer or do frequent independent research into the relevant rules and regulations. Notably, it is imperative that business owners refer not just to federal and state guidelines, but also to local rules and ordinances.

In California, the regulations sometimes vary from city to city or county to county. Here is an example: On August 2nd, 2021, Cal/OSHA released new guidance on masks. Under the statewide public health regulations, facial coverings are required in certain places, such as healthcare settings. For vaccinated people, masks are only “recommended” in most indoor workplace settings. However, some local governments have different requirements. For example, on August 3rd, 2021, the Alameda County Health Care Services Agency reinstated a full indoor mask mandate—regardless of vaccination status. Make sure you know the rules in your area.

Implement a Process for COVID-19 Planning/Rapid Decision-Making

As the COVID-19 outbreak is still a developing public health crisis, it is crucial that businesses in the Bay Area build and implement a process for pandemic planning and rapid decision making. Keep in mind that things can change quickly. Several factors are subject to change, including masking rules, vaccine regulations, social distancing guidelines, and capacity restrictions. A well-developed plan can make navigating the pandemic far easier. Among other things, your business should have:

A plan designed to meet your unique needs/industry
A proactive mindset, always ready to address changing rules
A clear chain of command to ensure swift and decisive decisions when necessary

Be Ready to Seek Professional Guidance on COVID Regulations

Owning and operating a business is difficult enough during normal times. With the COVID-19 pandemic posing a wide range of challenges on businesses in the Bay Area, it has become even more complicated. You should not hesitate to consult with an experienced California business lawyer who can help you and your partners manage the pandemic.

Schedule a Confidential Consultation with a Bay Area Business Lawyer

Attorney Lynnette Ariathurai is a skilled, solutions-focused advocate for business owners. If you have any questions about the best practices for navigating changing COVID-19 laws, our law firm can help. Contact us today for a strictly confidential consultation. From our Fremont law office, we represent businesses throughout the Bay Area, including in Hayward, Union City, Castro Valley, Milpitas, and Newark.

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Preparing Your Business for Bringing Employees Back to the Office in California

According to the California Department of Public Health (CDPH), more than 20 million state residents were fully vaccinated as of July 1st, 2021. With vaccinations rising and COVID-19 cases dropping, more and more employers are getting ready to bring their remote staff back into the office. It is a complicated thing to do—sorting everything out requires careful planning. Here, our Fremont, CA employment law attorney for employers highlights some of the key things to know about preparing your California business to bring employees back to the office.

Follow State and Federal Public Health Guidelines

As a starting point, business owners and managers should keep up with changing federal, state, and local public health & safety guidelines. For example, the Centers for Disease Control and Prevention (CDC) has provided a considerable amount of guidance for employers and employees. As an employer preparing to bring workers back into the office, you need to be ready to answer some key questions, such as:

Will you ask employees to show proof of vaccination status?
Will there be any masking or social distancing policies in place?
Do employees have the option to remain on a full or partial flex schedule?
What steps will you take if an employee tests positive for COVID-19?

Know the Unique Needs of Your Workplace

Every workplace is different. It is crucial that business owners consider the unique needs of their company. Among other things, this means taking proactive steps to adapt the physical workspace for the return of employees. In California, companies are using a wide range of strategies to prepare for the return of remote workers. Some companies are putting an emphasis on ventilation and sanitization. Other businesses are opting to reopen at partial capacity—allowing some employees to continue work remotely either full-time or part-time.

Getting Legal Advice on COVID-19 Laws

Before you bring your employees back to the office, you should seek legal advice concerning the current COVID-19 federal, state, county and city laws that apply to your business. Some questions you may have are:

What protocols must I follow at the workplace for my industry?
Can I require employees to be vaccinated before returning?
Can I terminate an employee who refuses to come back to the office?
Am I required to reasonably accommodate an employee and allow some employees to work from home and require others to work at the office?

The answer to each of those questions may depend on what industry you are in and what city, county, and state that your business resides in. The laws are complicated and continually changing, but you can rely on us for timely, accurate counsel.

Effective, Open Communication with Employees is Key

As employers in California bring their staff back to the workplace, it is important to develop clear, well-articulated policies. Open communication between businesses and employees can go a long way towards reducing conflicts. Employers may also benefit from adopting a more flexible approach that allows for a gradual return to the workplace for many workers. Of course, consistency and clarity are important. At the same time, that does not mean that every employee is dealing with the same issues. There may be some circumstances in which companies are required to make accommodations under the Americans with Disabilities Act (ADA) or other state/federal labor regulations.

Get Help from a Business Law Attorney in Fremont, California

Attorney Lynette Ariathurai is an experienced employment law attorney for employers. If you have any questions or concerns about preparing your California company for bringing workers back to the office, our law firm can help.

Contact us now to arrange a confidential appointment with an attorney. From our Fremont law office, our law firm represents employers throughout the region, including in the San Francisco Bay area and Silicon Valley.

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Medical Leave Rules for California Businesses

Recent changes to medical leave rules in California mean that business owners need to learn about their new responsibilities under the law in order to avoid claims and ensure their compliance with state law. Employers in California should specifically know about new medical leave rules that provide California workers with more rights than they currently have under the federal Family and Medical Leave Act (FMLA), which took effect on January 1, 2021, as well as requirements for COVID-19 sick pay that took effect on March 29, 2021.

Expansion of California’s Family and Medical Leave Law

Since January 1, 2021, California employers who have five or more employees must comply with an expanded version of California’s family and medical leave law by allowing employees to take protected leave to care for themselves and for sick family members. The changes to the law arose out of the COVID-19 pandemic, as legislators realized that many parents were unable to be home to provide care for sick children, or for children who needed to learn remotely due to the pandemic’s closure of schools and day care centers. While some people can work remotely, not all jobs come with the possibility of remote work or a work-from-home situation. Accordingly, due to the pandemic, legislators considered how parents who cannot do their jobs from home would need additional protections to take leave from their jobs—both to provide care for their children, and to care for themselves if they become ill with COVID-19.

The new law expands the California Family Rights Act (CFRA), which previously required employers to provide up to 12 weeks of job-protected, unpaid leave for employees who had been working for the employer for at least 12 months and had accumulated at least 1,250 hours of work in that 12-month period. Those requirements have not changed. What has changed is that the law used to apply to employers with 50 or more employees within 75 miles of the worksite, like the federal FMLA. Now, the law applies to employers with 5 or more employees. To be clear, employers with 5 or more employees now must provide job-protected, unpaid leave for up to 12 weeks if they meet the other requirements. In addition, employers must continue to pay the employee’s health insurance coverage under the same terms as if the employee were not on leave.

In some cases, these employees also may be eligible for pay during a medical leave because of another recently passed law.

Expansion of Supplemental Paid Sick Leave Due to COVID-19

In addition to expanding the CFRA to smaller employers, California lawmakers also passed a new law that will require employers to provide supplemental paid sick leave to employees who have been affected by COVID-19. The new law, Senate Bill 95, took effect on March 29, 2021.

This new law expands the employers (and thus their employees) who are covered: both public and private employers in California with more than 25 employees must provide up to 80 hours of COVID-19 paid sick leave, which is in addition to paid sick leave policies that are already in effect through the Healthy Workplaces, Healthy Families Act of 2014. The law also expands the reasons for seeking this paid sick leave, including the need to provide parental care due to school or daycare closures. In addition, employers need to know that this law applies retroactively to January 1, 2021.

Seek Advice from a California Business Law Attorney

The trend in California appears to be moving toward more paid leaves and the expansion of employers who must comply with medical leave policies. For smaller companies, these kinds of expansions can be extremely difficult since they often require employers of very small businesses to hold jobs open for an employee on leave and pay both the employee on leave and the person who steps in to do their job during the leave period. Then, once the leave period ends, the business can be required to provide unemployment compensation to the employee who was terminated to reinstate the employee who was on leave. In short, recently changed California laws have not taken into consideration the financial burden they may be placing on small businesses across the state.

If you have questions about your obligations as an employer under the new leave laws, Attorney Lynnette Ariathurai can assist you. Contact us to learn more about the services we provide for employers in California.

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